Hector Igbikiowubo and Luka Binniyat
7 January 2009
THE Federal Government yesterday disclosed it was working on reviewing pump prices of petroleum products even as crude oil prices yesterday hovered around $50 per barrel in the international market owing to crisis in the Niger Delta, Israeli invasion of Gaza and the Russia, Ukraine dispute over gas exports.
Vanguard's investigation on the Petroleum Products Pricing Regulatory Agency (PPPRA) template revealed that landing cost of Premium Light Sprit (PMS) or petrol is N47 per litre, while the retail price of petrol remains N70 per litre
With daily consumption of about 30 million litres of PMS per day, in December alone, Nigerians lost about N450 billion to marketers and the Federal Government sold PMS at an ex-depot price of N60 per litre at all the Pipeline Products Marketing Company (PPMC) depots.
Dr. Rilwanu Lukman, Minister of Petroleum, made the disclosure regarding review of fuel pricing while speaking with reporters after the 2009 Budget defence before the House Committee of Petroleum Resources (Downstream).
Contrary to expectations, Dr. Lukman said the price differential "just happened last month," adding that after ongoing discussions with stakeholders, the media would be briefed on the outcome.
Earlier, the Minister had appealed to the House Committee on Petroleum Resources (Downstream) chaired by Mr. Clever Ikisikpo on the importance of appropriating money for part of the Trans-Shahara Gas Pipeline, saying the $13 billion, 4,300km project, would first benefit Nigeria, before Niger, Algeria and ultimately Europe.
"The project would first take gas from the Niger Delta through Imo, Enugu and Ajaokuta, then Abuja, Kaduna and Kano. It would then tee-off to other parts of Nigeria that would need it. The money we are asking for is a feasibility study on our part here. But is a very important project that has been conceived about 20 years ago," he explained.
Permanent Secretary of the Ministry, Abubakar Nayaya, had earlier presented a N21.5 billion budget to the committee, which among others, was made up of N339.5 million personnel cost, N778.9 million overhead cost and N19.95 billion capital cost for the 2009 appropriation year.
Oil prices rise
Meanwhile, oil prices hovered around $50 per barrel yesterday over militants activities in the Niger Delta, Israel's ground offensive in Gaza and a dispute between Ukraine and Russia over gas imports, but some analysts say there's more than just unrests in the Middle East behind the rally.
In London, February Brent crude rose $2.95 cents to $49.86 a barrel on the ICE Futures exchange.
Light Sweet crude for February delivery rose $2.44 cents to $48.78 a barrel on the New York Mercantile Exchange, after jumping $1.74 on Friday to settle at $46.34.
Commander of the JTF, Brig. Gen. Wuyep Rimtip said Saturday he did not know how severely the pipeline was damaged and suspected local youths rather than militants were responsible for the attack.
Tensions were also high in the Middle East as thousands of Israeli troops backed by tanks and helicopter gunships surrounded Gaza's largest city and fought Hamas militants at close range Sunday. The offensive moved from airstrikes to artillery shelling and ground fighting in a bid to stop Hamas rocket fire on southern Israel.
An Iranian Revolutionary Guard commander had urged Islamic nations, on Monday, to use crude oil as a weapon to exert pressure on Western backers of Israel.
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